1. Perform a Budgeted Income Statement

2. Prepare a Cash Budget; include cash receipts and disbursements

What the Scrap Steel Co. produces and sells steel doors with budgeted or standard costs as follows: Depreciation is a non-cash expense and is valued at $1,000 and is included in the Fixed OH cost above. Unit Sales for the prior and future months are budgeted as follows: Jaly August Septenber 20250270 The desired Ending Inventory of Materials is 5% of the materials needed for production for the following month. The desired Ending Inventory of Finished Goods is 10% of production for the following month. The Ending Inventory for June was 28 units. The cost per unit for June was \$ 386 per unit. The budgeted sales price is $1,200 per steel door. Sales are budgeted as 100% credit sales. According to previous recorded collections, Scrap Steel determined that 55% of sales are collected during the month of sale; 43% are collected in the following month; 2% are uncollectible. June Accounts receivable were $129,000 and will be collected in full during July. The materials purchases are 100% credit 70% in month of purchase and 30% in the following month. The beginning Accounts Payable is $5,500. Selling and Administrative expenses are: Variable Selling and Administrative Expenses 550 per unit sold Fixed Selting and Administrative Expenses $15,000 per moeth Selling and Administrative depreciation is a noncash expense that is at a rate of $750 per month that is included in the fixed expenses above. The following information for the cash account follows: Scrap Steel requires a minimum ending cash balance of $1,500